Benchmarking the performance of telecom providers.
The joint clients, two specialised telecom and ICT businesses, explored a strategic partnership to improve their performance and to grow into new international markets with the latest technologies. An important stepping-stone was an in-depth assessment of their financial performance compared to a group of leading European market peers. Our clients wanted to gain more insight into their common business model, potential synergies, and areas for improvement.
How do we perform and where can we leverage our strategic partnership?
The benchmark was based on a detailed three-year value tree looking at seven companies, with a breakdown of the economic performance into such drivers as: revenue growth; procurement and organisational cost; network and equipment; inventory; cash base; and payables. The benchmark revealed a series of key improvement opportunities, for example in sourcing cost, staffing, investment rate and working capital, specifying an important potential to improve the return on investment for each client.
A sound set of navigation beacons to refine the business plan and to further shape the business model of the partnership.